Although most of us probably cannot even imagine a scenario where we would refuse an inheritance, there are actually situations where it would make sense. Some of these situations include:
- The property left to you could require significant upkeep, therefore significant financial outlay. A property could have extremely high property taxes or insurance, or an older home could require so much upkeep that it is simply not financially feasible to accept the gift.
- Accepting the inheritance could potentially interfere with your eligibility for a necessary government assistance program.
- The inheritance may generate a level of tax obligation that you are simply not able to pay.
- You might want the property left for you to go to another person.
- You could be contemplating filing for bankruptcy and do not want the property to be sold to pay your creditors or have it otherwise interfere with your bankruptcy proceedings.
- You could be thinking about divorce and do not want to take the chance that the inheritance could be subject to the marital property division laws in your state.
- You simply may not like the item left to you or want the inheritance.